A U.S.-Japan consultation panel held its first meeting to consider initial projects for a $550 billion investment pledge that is a pillar of the two countries¡¯ trade deal.

The panel met online, exchanged views on potential projects for the investment initiative and confirmed ongoing close cooperation, Japan¡¯s Foreign Ministry said Thursday. The meeting was attended by representatives from the U.S. Commerce Department, Energy Department and Japan¡¯s foreign, trade and finance ministries.

The U.S. Commerce Department didn¡¯t immediately respond to a request for comment.

The meeting marks the start of a formal selection process for the investment mechanism. After the discussions, the consultation panel is set to give its input to an investment committee led by U.S. Commerce Secretary Howard Lutnick. Based on that committee¡¯s recommendations, President Donald Trump is expected to make final decisions on which projects are selected.

Japan could face the return of higher tariffs if it doesn¡¯t fund a project within 45 days of Trump¡¯s decisions. Earlier this year, Trump raised tariffs on most Japanese goods to 25%, then scaled them back to 15% after Japan agreed to boost investment in the U.S. through the $550 billion mechanism.

The fund aims to advance economic and national security interests by investing in areas including semiconductors, critical minerals and energy. It¡¯s expected to work as a vehicle to accommodate investments from Japan to the U.S. on a project-by-project basis. In October during Trump¡¯s visit to Japan, the two nations identified a list of potential projects for the investment fund.

The government-backed Japan Bank for International Cooperation and Nippon Export and Investment Insurance also attended the meeting, and are set to be the key institutions providing equity, loans and loan guarantees for the projects.